What's Going On With Meta Platforms Stock Ahead Of Q3 Earnings?

Meta Platforms Inc META shares are up nearly 25% over the past quarter. The company is gearing up to report earnings again next week. Here’s a look at what you need to know ahead of the report.

What To Know: Meta is scheduled to report third-quarter financial results after the market close on Oct. 30. The company is expected to report earnings of $5.24 per share and revenue of $40.253 billion, according to estimates from Benzinga Pro.

Meta has exceeded analyst estimates on the top and bottom lines in six consecutive quarters heading into the third-quarter print.

Last quarter, Meta beat analyst estimates as revenue jumped 11% year-over-year and daily actives climbed 7%. The company noted at the time that Meta AI was on track to be the most used AI assistant in the world by the end of the year.

"We had a good quarter. We continue to see strong engagement across our apps and we have the most exciting roadmap I've seen in a while with Llama 2, Threads, Reels, new AI products in the pipeline, and the launch of Quest 3 this fall," CEO Mark Zuckerberg said in the second-quarter earnings release.

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Several analysts have already released positive updates ahead of earnings next week. BofA Securities maintained a Buy rating and price target of $630 earlier this week, calling Meta a top AI pick. The analyst firm expects Meta’s quarterly results to exceed consensus estimates.

Jefferies also maintained a Buy rating on Meta this week and lifted the price target from $600 to $675. Other recent analyst changes include a price target increase to $675 by TD Cowen, an Overweight reiteration from Cantor Fitzgerald and a price target bump to $650 from Mizuho.

Mizuho analyst James Lee maintained an Outperform rating on the stock heading into earnings as he anticipates a beat-and-raise quarter from the tech giant next week.

Ad agency checks showed that ad spending is ahead of consensus estimates and at the high-end of Meta's guidance for 20% growth year-over-year, the analyst said.

"Although the stock is a crowded trade into the print, we believe it is the only big tech internet name that could beat and raise with substantial optionality in messaging and Gen-AI for creative," Lee said.

Meta will hold a conference call at 5 p.m. ET next Wednesday to discuss the company’s quarterly performance with analysts and investors.

META Price Action: Meta shares are up approximately 60% year-to-date heading into the report. The stock was up 0.54% at $566.74 the time of publication Thursday, according to Benzinga Pro.

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